CH. Karnchang confident on 2016 outlook with restructured management team, readiness for new construction and PPP projects, expecting revenue of Bt 40,000 million

Thursday 28 April 2016 13:03
Mr. Plew Trivisvavet, Executive Chairman, CH. Karnchang Public Company Limited revealed that "We achieved strong performance in 2015 while the management restructuring of its subsidiary, Bangkok Expressway and Metro Public Company Limited (BEM) is accomplished as planned. The management restructuring for BEM is intended to bring a great deal of benefits by strengthening the company's financial stability, streamlining its operation while allowing BEM to seize new opportunity for new project investment. Meanwhile CH. Karnchang has enhanced its workforce readiness by addition of new senior management team members, as well as strengthened its financial readiness and leveraged strategic partnerships to accommodate upcoming infrastructure development in Thailand and overseas. With its 43 years of experience, extensive knowledge base, advanced engineering expertise and high capacity of working teams, CH. Karnchang is confident in producing quality project outcomes and accomplishing its business goals. The company planned to participate in the bidding of new mass transit and transportation projects including the MRT Orange Line, Pink Line and Yellow Line, the dual-track railway project, Motorway project, and Suvarnabhumi Airport Phase 2 project, and is confident that it will acquire 20 – 25% construction work of these projects. With strong and diversified subsidiaries like BEM, TTW and CKP, CH. Karnchang is also ready to jointly invest in the government's infrastructure projects under PPP scheme like expressway, superhighway, electric train system, power plant and water treatment plant projects. As for the investment in overseas, two key markets are Myanmar and Laos where the infrastructure development is seeing high growth rate."

Dr. Supamas Trivisvavet, Chief Executive Officer, CH. Karnchang Public Company Limited (CK) said that "We managed to maintain a strong revenue stream and profit ratio in 2015 with total revenue of Baht 38,027 million and net profit of Baht 2,260 million. Of the total revenue, Baht 34,815 million came from construction business, which grows 5.62% from the previous year. The gross profit ratio for 2015 is 8.22% which is highly satisfactory. With strong performance in 2015, the company's Annual General Shareholder Meeting on 29 April 2016 agreed to pay the dividend of Bt 0.40 per share, when combined with previous interim dividend of Baht 0.25 per share, the total dividend for its 2015 performance is Baht 0.65 per share."

In 2016, CH. Karnchang set target revenue for construction business of Baht 35,000 – 38,000 million. The company's current backlog accounts for Baht 83,551 million. In March 2016, the company signed a construction contract for Pattaya-Map Ta Phut Motorway - Contract 5 project for Baht 727 million. The Na Bong Power Substation project in Lao PDR, worth Baht 2,200 million, currently awaits contract signing. The company is also recently awarded an additional construction work for Xayaburi Hydroelectric Power Plant Project in Lao PDR worth Baht 19,000 million of which the contract is expected to be signed later this year. The construction of Xayaburi Power Plant is now reaching 60% completion as planned.

CH. Karnchang also expressed their readiness to participate in bidding of new transportation infrastructure projects including new various MRT lines, Suvarnabhumi Airport Phase 2, Motorway and dual-track railway worth totally Baht 500,000 million.